AFAB signs MOA with GA, DND to develop defense industry eco zone

The Department of National Defense and the Authority of the Freeport Area of Bataan (AFAB) forge alliance to develop and improve the country’s defense capabilities. Contributed photo

MANILA, Philippines — The Authority of the Freeport Area (AFAB) has established a mutually beneficial economic relationship with the Government Arsenal (GA) in Limay, Bataan as both parties signed a Memorandum of Agreement on the proposed declaration of GA’s 370.371-hectare Defense Industrial Estate (DIE) as the newest FAB Expansion Area (FEA).

During the MOA signing on June 27, 2022 at the Department of National Defense Building, Camp Aguinaldo in Quezon City, both the AFAB, headed by Administrator Emmanuel D. Pineda, and the GA, under the authority of Acting Director Major Gen. Arnold Rafael Y. Depakakibo AFP (Ret), will work collaboratively in the establishment and operation of the GA FEA as a sustainable defense-industrial base, with the goal of encouraging investors in defense projects to generate employment opportunities in the province as well as income for the government.

Expected gains from this joint venture would help sustain the government’s Armed Forces of the Philippines (AFP) modernization program in line with the national policy of defense self-reliance.

Also present during the signing was outgoing Defense Secretary Delfin N. Lorenzana, who approved the undertakings of both parties given that the GA is an agency under the DND.

In his statement, Lorenzana underscored the significance of this partnership in the government’s long standing plan to establish defense industry economic zones across the country.

“Today is a great day to celebrate cooperation and the spirit of collaboration… the DND has always intended to stimulate the local defense industry, and this joint venture is a monumental step in that direction. As you all know, the AFP is nearing the peak of its modernization efforts that are aimed at achieving a stronger defense posture for our country, and today’s event will hopefully jumpstart material acquisition from foreign defense industries,” Lorenzana said.

The DND secretary  also acknowledged the efforts and contribution of Bataan 2nd District Representative Jose Enrique “Joet” Garcia III for the fulfillment of this milestone that will undoubtedly usher in progress and development for the province.

With the execution of the said MOA, the AFAB has been successfully appointed and engaged as the GA’s Incentives Administration Authority with exclusive authority to market and transact with investors within the GA FAB Expansion Area that may either be defense locators and enterprises (DLEs) or non-defense locators and enterprises (non-DLEs).

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